Laura Tyson for OMB Director--Or Something!

More

Reading Laura Tyson's New York Times op-ed over the weekend on why we need a second stimulus underscored what a loss it is for the Obama administration that it couldn't manage to find a place for her on its economic team. Last month, Tyson was on the short list to replace Peter Orszag as OMB director--actually, she was more than on the short list; she was the presumed successor--but something happened, and the job went to Jacob Lew instead. Lew is, by most accounts, eminently qualified for the job. Indeed, he's held it once before, in the Clinton administration. But he lacks the amiable plainspokenness on economic issues, the ability to distill complicated issues to their essence, especially on television, that Tyson possesses--which is to say, he lacks the very thing the administration needs most.

This also happens to be the chief quality of Tyson's op-ed. It presents in simple, straightforward language a plausible case that the original $787 billion stimulus is working as intended (as most economists believe), but that our problems are so severe that it simply isn't sufficient and another round is needed. These two paragraphs frame the political, historic, and economic situation better than anything I've seen, and with admirable efficiency:

Our national debate about fiscal policy has become skewed, with far too much focus on the deficit and far too little on unemployment. There is too much worry about the size of government, and too little appreciation for how stimulus spending has helped stabilize the economy and how more of the right kind of government spending could boost job creation and economic growth. By focusing on the wrong things, we are in serious danger of failing to do the right things to help the economy recover from its worst labor market crisis since the Great Depression.

The primary cause of the labor market crisis is a collapse in private demand -- the same problem that bedeviled the economy in the 1930s. In the wake of the financial shocks at the end of 2008, spending by American households and businesses plummeted, and companies responded by curbing production and shedding workers. By late 2009, in response to unprecedented fiscal and monetary stimulus, household and business spending began to recover. But by the second quarter of this year, economic growth had slowed to 1.6 percent, according to a government estimate issued Friday. Clearly, the pace of recovery is far slower than what is needed to restore the millions of jobs that have been lost.

It's pretty obvious that the White House has all but given up on pursuing a second stimulus or anything else that's significant along those lines. They've resigned themselves to the onslaught in November. White House officials complain ("seethe and whine" is a more accurate characterization) that it's all the fault of Congress, that they understand what's needed, but are simply helpless to bring it about.

Maybe it's expecting too much to believe that if Tyson had been one of the administration's "economic principals," as they're annoyingly referred to, and had been out making this case publicly, and to Congress, for the last several months, then the idea of another stimulus wouldn't sound as far-fetched and hopeless as it does right now. But you can't win an argument if you're not even making one. Quick--who in the White House could you envision speaking these words on television? I draw a blank.

Jump to comments

Joshua Green is a former writer and editor at The Atlantic.

Get Today's Top Stories in Your Inbox (preview)

Video

More Video
Here's What Happens When You Light a Fire in Space


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Miami: The Next Big Start-Up City?

How the city became a center for innovation

Video

Video

A Brief History of Romantic Comedies

From The Atlantic's Chris Orr

Video

Life in 'the New Arctic'

A moving portrait of a fading landscape

Video

Video

The Rise of New York City

A fascinating look at Manhattan in the 1940s

Video

What Is Methane Hydrate?

"Flaming ice" is a vast natural energy source

Video

NASA's Time-Lapse of the Sun

Now with epic dubstep music

Video

Shaken Not Tuned: Cocktail Experiments

Can a tuning fork improve a cocktail?

Video

Video

Is He Cheating? A 1950s Guide

'That little blonde secretary from the office?’

Video

New Yorkers: Vintage Vacuum-Tube Amps

Risking electric shock to restore old amplifiers

Video

The DIY Piano-Bicycle

Everybody needs a hobby

Video

What Does It Take to Make Real Craft Gin?

Tour the Green Hat Gin distillery

Video

What Straights Can Learn From Same-Sex Couples

New insight from decades of research

Video

The End of the Mall Rat

A tribute to that pillar of teen culture

Video

The Wonderful World of Capitalism

An adorable 1950s cartoon

Video

New Yorkers: Miss New York USA

An unconventional beauty queen.

Writers

Up
Down

More in Politics

In Focus

Early Monsoon Rains Flood Northern India